This blog continues our four part series into changes that the Consumer Rights Act 2015 (“CRA”) has recently bought into effect. In this bulletin, we examine the key changes to the supply of services and how businesses should respond to these to ensure compliance.

THE SUPPLY OF SERVICES

The CRA implies the following terms in contracts for the supply of services:

CONSUMER REMEDIES

The consumer is entitled to a repeat performance of the service or to a price reduction in the case of non-conformity with the above. Both of these statutory remedies are new.
See our last bulletin for guidance on “who is a consumer” for the purposes of the CRA.

Repeat performance
This remedy is available where the trader fails to exercise reasonable care and skill or where they breach a requirement arising from information they have given about the service. The consumer can require the trader to repeat the service in order to complete it properly. This work must be carried out at no cost to the consumer, within a reasonable time frame and without causing significant inconvenience to the consumer.

Price reduction
The consumer can claim a price reduction where repeat performance:

A price reduction can also be claimed where the service is not done within a reasonable time frame or where the trader breaches a requirement arising from information they have given about something other than the service itself.

The amount of the price reduction can be up to 100{ba3215b0bf35eaeb06be458b3396ffbfc50bb9db10c9ff1594dfc3875e90ea48} of the total price and will depend on how serious the breaches are.
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ACTION POINTS:

If you require any further information, please contact Emily Sadler.

COMING SOON: PART 4: In our last bulletin we will explore how the CRA impacts upon unfair contract terms legislation in relation to goods and services.